Double Fine Is Forming a Union Amid Industry Shifts

Double Fine is forming a union, marking another significant milestone for game development labor relations under Microsoft. On May 7, 2026, the San Francisco-based studio filed a formal petition with the National Labor Relations Board to recognize its workforce through the Communications Workers of America (CWA). This organizing drive will initially cover 42 regular part-time and full-time employees, positioning the studio as the latest major developer to join the growing wave of unionized Microsoft studios.

The CWA highlighted the workers' primary motivations in a recent statement. They aim to preserve and extend the studio’s longstanding commitments to creative excellence, diversity and inclusion, and overall worker quality of life. In addition to requesting voluntary recognition from Microsoft, the team has secured an election petition to ensure formal union representation. Microsoft has reportedly agreed to a neutral stance during this process, committing to non-interference with the workers' rights to organize.

A Growing Wave of Microsoft Studio Organizing

Double Fine forming a union aligns with a broader shift across the gaming industry. Following the 450 Blizzard Entertainment staff who voted to unionize in August 2025, and the subsequent 165-developer union at id Software in December of that year, Microsoft-owned studios are increasingly advocating for collective bargaining. Before the expiration of a previous neutrality agreement late last year, staff from multiple Microsoft teams also worked to form unions. This includes developers from the World of Warcraft, Overwatch, and Blizzard Story and Franchise Development teams. Additionally, Raven Software Quality Assurance workers successfully organized back in 2022 and recently secured their first contract with Microsoft last August.

Corporate Pressures and Leadership Shakeups

The push for a Double Fine union arrives during a period of significant uncertainty for the parent company. Microsoft has faced intense scrutiny following massive layoffs that impacted approximately 9,100 employees in July 2025, building on reductions throughout 2024. A Bloomberg report from October 2025 revealed that the Xbox division was allegedly pushing developers to achieve a steep 30% profit margin. Consequently, the company cancelled multiple high-profile projects in 2025, including titles from:

  • The Initiative
  • ZeniMax Online Studios
  • Rare

Leadership transitions have further complicated the corporate landscape. In February 2026, both Xbox CEO Phil Spencer and Xbox president Sarah Bond announced their departures. Asha Sharma, formerly of Microsoft CoreAI, stepped in as the new Xbox CEO, while Xbox Game Studios head Matt Booty assumed the role of chief content creative officer. Under Sharma's brief tenure, the company has already implemented a leadership reshuffle, discontinued Copilot on console, and announced Game Pass price cuts.

Double Fine's Legacy and Recent Output

Despite the shifting corporate environment, the studio continues to deliver critically acclaimed games. Acquired by Microsoft in 2019, Double Fine boasts a 25-year history in the gaming space. It is best known for its mind-bending platformer Psychonauts, which finally received its long-awaited sequel in 2021. The studio's catalog also features beloved titles like Brutal Legend, Broken Age, and Costume Quest.

Most recently, Double Fine released Kiln on April 23, 2026. This multiplayer brawler introduces a unique gameplay mechanic where players control moldable pieces of pottery. As the studio navigates its new labor structure, it remains focused on delivering innovative experiences while advocating for improved workplace standards. The Double Fine forming a union initiative underscores a pivotal moment for developer labor rights and corporate accountability in the modern gaming industry.